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General Environment Analysis

Elements
Political/Legal

Economic

Socio-cultural

Description
Political changes in the industry such as free trade markets helped SIA
in getting more access to different countries and cities around the world.
The intervention of Singapore government was minimal but there were
specific moves that gave SIA a way to enhance the quality of its
facilities and services. The joint government control of Malaysia and
Singapore was a way that helped SIA in accessing the Malayan people.
With the help of the Prime Minister, Mr. Lee Kuan Yew, back then
opened doors to SIA to Australia, Malaysia and Indonesia. The
government was an important segment for SIA to reach the countries it
caters to at the moment for the government ties and agreements of the
countries it caters to give way to easier access to SIA. With the
abovementioned statements, Singapore is seen as a politically stabled
country and SIAs reputation is top quality and the investors here are
having tremendous amount of security and ROI.
Economic conditions were very important for recessions cause price
sensitivity and this was seen during the Asian Economic Crisis that
started in 1977. Before the crisis, travel to and from Asia were the
fastest growing but it became moderate when the crisis fell. Due to the
crisis, the Asian currencies became weak and held SIA into having a
bigger cost due to the US dollar exchange rates. One example of the
costs SIA encounters is fuel and most of the services the airline needed
were in US dollar denomination. Despite the crisis, it still gave
opportunities to SIA in growing the rate of its shareholders funds and
getting better profit due to the increased pricing for the flights. In the
airline industry, most firms maximized their load and yield factor while
minimizing their costs which was a good strategy for the airlines to gain
profit. In order for the maximization of revenues, the airline categorized
their consumers and studied their ability and willingness to pay which
was a way for the airlines to know their pricing strategies. In addition,
with the rise of cheaper alternative for travelers, SIA is facing stiff
competition in attracting consumers with budget constraints.
The attitude of SIA towards the personal grooming of the staff was a
good idea for uniformity. One strategy it has is diversification for the
airline facilities have restaurants, conference halls, etc. that the travelers
may use when they need to. In line with this, the campaign started by the
company was attractive and was easy to recognize which is a plus point
for consumers for it is easily remembered. The trainings the company
conducts is a strategy that will help the company and the staff in
improving their own skills as well as their skills in handling people and
challenges. The motto Unless you can make the others happy, you can
never be happy yourself. was very catching and was a way for the staff
to extend their skills and services better for the quality experience their
consumers need. Despite the good points, the culture differences

Technological

Demographic

Global

between the alliances SIA have may give a little disturbance for the
adjustments on the culture is hard but with the trainings the company
conducts, the culture difference may be eliminated.
The extensive use of technology in airlines operation made the
consumers have a better experience. Acquisition of new aircrafts in SIA
let their consumers see that the company is more reliable than the other
airlines. SIA had the youngest fleets of all the major international
carriers and this gives the consumers a vision that the aircraft is safer
and the experience will be quieter and the space will be roomier. The
uninterrupted travel flights that SIA announced attracted businessmen
and women and with the advanced aircrafts and entertainment, the
company shows freshness and innovation. The acquisition of advance
technologies like Celestel, Krisworld, Surround Sound, etc., placed SIA
to the top. Having automatic external defibrillators lead way to people
feeling safe in SIA and due to the technological advancements
happening, the efficiency of the airline improved. In addition, the
introduction of internet paved way to having e-ticketing and online
purchasing, check-in and such will was very hassle free for consumers.
The population of Singapore will be more than 6 million by 2020 and
the numbers of travelers are increasing. SIA catering to business and
leisure types of flights was an opening gate to their attraction. With the
expansion of their route network to more than 40 countries, the
expectation of consumers increased and having foreign staff was a good
decision for the company. Having foreign staff is helpful in different
countries for the universal language is English and a foreign staff would
most likely know English. Having the staff diversified shows that SIA is
not closed to diversification and is open to other cultures coming in their
company.
Globalization is increasing the demand for air travel and the airline
industry formed a major component of the travel and tourism industry.
The alliances and partnerships that Singapore International Airlines
(SIA) did was a great way for their company to extend its reach and
expand its service to different countries. The Trilateral Alliance it did
during 1989 was a good move for their reach was able to extend to U.S.
states and European countries though as the years passed by, the
company saw that the alliance was not very beneficial so the termination
of the contract was a wise decision. As the years progressed, it had
several more alliances and partnership contracts that gave way to SIA
growing faster, improving services and benefits and becoming a global
group thats famous in the industry. With the strategy of alliances and
partnerships, the company paved a way for it to improve in terms of
service and route structures which gave way to more profit and better
travel experience to their consumers.

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